HSBC Holdings warned of a dim outlook next year as slowing economic growth following the vote Brexit hampers chief executive Stuart Gulliver’s drive to boost revenues at Europe’s biggest bank.
“UK retail banking profit will be challenging next year,” Gulliver told Reuters yesterday.
HSBC reported a sharp jump in its core capital ratio to 13.9 per cent, as the key measure of financial strength was lifted by a change in the regulatory treatment of its investment in China’s Bank of Communications. The ratio was 12.1 per cent at the end of June and 11.9 per cent at the close of last year.
HSBC posted an 86 per cent fall in reported pre-tax profit to £681 million for the third quarter ended on September 30, as it booked a £1.37 billion loss on the sale of its Brazilian unit, falling revenues from trade, and adverse foreign currency movements.